FTX Contagion May Have 'Infected' This Crypto Trading Firm That's Now Facing A – Bitcoinist

Sam Bankman-Fried, the former CEO of FTX, may have felt the same sorrow as the thousands of investors who entrusted him with their money, but the misery seems to persist regardless of the excuses he offers.
Thousands of unhappy investors are still unable to get a good night’s sleep because of the nightmare brought about by the failure of one of the world’s largest crypto exchanges.
Now, the “infection” could be manifesting itself in the form of a crypto trading platform – Auros Global – which is experiencing “short-term liquidity” symptoms as a result of the FTX disaster.
According to cryptocurrency trading company Auros Global, a $3 million loan of 2,400 Wrapped Ether (wETH) has not been repaid. Multiple sources disclosed Thursday that the information was provided by the pseudonymous credit pool manager M11 Credit, which oversees liquidity pools on Maple Finance.
In a Twitter post, M11 Credit said:
“Auros is experiencing a short-term liquidity issue as a result of the FTX insolvency.” 
M11 Credit has highlighted that the loan is not in default just because a payment was missed. The delayed payment has instead triggered the “5-day grace period,” according to the smart contracts.
With the November 11 revelation of FTX’s bankruptcy filing, a handful of crypto and blockchain companies have filed or are in the process of filing for bankruptcy.
The FTX ‘infection’ has now spread to other jurisdictions.
Genesis, a subsidiary of Digital Currency Group (DCG) and an institutional trading entity, has $175 million in locked money in its FTX trading account.
According to multiple news sources, the company’s creditors have retained restructuring legal counsels and are examining methods to avoid going belly up.
Compute North, a cryptocurrency mining company, filed for Chapter 11 bankruptcy on September 22 with almost half a billion US dollars in debts.
This week, the US-based lender BlockFi filed for bankruptcy, while simultaneously adding to the misery of Sam Bankman-Fried and FTX with a lawsuit in the same court.
A hedge fund controlled by a subsidiary of the German cryptocurrency platform Immutable Insight disclosed that it is exposed to FTX’s downfall and owes $1.5 million.
While Auros, an algorithmic trading and market-making outfit, has not yet responded to M11 Credit’s claim, Maple Finance has retweeted the topic.
M11 credit asserts that it is “collaborating with Auros” to offer lenders with a joint statement containing more information.

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Freelance writing is Christian’s other cup of tea. When not on his computer, he unwinds with a cold bottle of beer and laughs with his son over cartoons. Other than that, he’s just like everybody else who wants to be happy with their life.
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